Offer to purchase question

RonSwanson said:
That is what the contract states, yes. The reality is very different. Firstly, all access for viewing needs to be reasonable, so that means at a reasonable time and frequency. It is not uncommon for this to be once or twice per week max, and at a reasonable time (most tenants prefer late afternoon/early evening, none like mornings).
Then there are further conditions which the lessee can raise, such as giving reasonable notice (24 hours?) as well as insisting that the lessor accompany those viewing the property. It would be unreasonable to expect the lessee to just allow people off the street into their homes, what if they come in significant numbers (5 or 6 at a time), who is going to check that they are not pilfering?
In reality, the lessor is the one who is at a disadvantage here, because a spiteful lessee can ensure that the place looks untidy, smells bad, unwashed dishes piled up, unflushed toilets, unmade beds, filthy floors etc. even when reasonable notice is given and access is reasonably granted. Potential lessees will often pose interview questions to the current lessee about a number of things, and the responses to these questions are often crucial to seal a deal.

A smart lessor would negotiate a small fee with the current lessee to act as their agent, and to pay a small commission if the new guy gets signed up. This will ensure that he gets the current lessee's co-operation in terms of access, and that the place ought to be in a reasonable state. It's no guarantee because some lessees live like filthy pigs regardless, but it works mostly.
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1. It is the lessee's home and has been for many years. Might be your house, but there is a contract that gives me the full right to live here without lesser dictating how I should live.

2. I can live as I like as long as it does not damage the property.

3. The lesser is welcome to pay for a maid to come in daily if she has a specific standard she prefers. I am not going to inconvenience myself just because she wants to sell in the middle of my lease.

4. I do not answer any questions, to an agent or any 3rd party. They can stop being lazy for a change and do their own homework and bother the owner. Buyers will come in and submit to my rules. They don't ask me questions as well. They stay out of my office, they stay out of my room where my wife is.

5. I have dogs. They don't bite. Suck it up. The gonna lick the hell out of you.

6. I have a sick wife. She will not the bothered under any circumstances what so ever.

7. Any photos of my private property is a breach of my privacy and security. The agents can come move stuff out. Take a photo. And move it back in. I run my office from home, if the stuff ends up on a website I will be robbed the next day.


Anyways, this thread is about purchasing property. Not our rights as tenants. :ROFL:

Tomorrow is Sunday, which means home showing day for a lot of properties. Might take a drive with my wife. Although Covid as thrown a spanner in the works which means might only happen next weekend.
 
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RedViking said:
I couldn't sleep last night and started reading the thread from the start. Only got to about page 50ish. Even though I have read everything here before, I now read it from a different perspective and paying better attention to things. Some stuff I haven't figured out yet, or might have missed due to midnight reading....

1) OTP
2) Lawyer
3) Bond Originator
4) Property Value


1) You guys keep mentioning that you made sure all the important things are in the OTP and that you sometimes removed or added a clause. Where do you get this information from? Knowing nothing about an OTP, is there a list or guideline you guys use what should be in there? How am I supposed to know what should or should not all be in there, besides the bits and pieces I pick up in the thread here and there and how to add the correct wording?

Please can someone give me more knowledge or guidance on this, even a PM is fine.

2) For a private sale. Where do I find a lawyer or who do I approach? How do I know they are worth their $alt.

I have very very very bad experience with agents and lawyers. They are the two services in this world I despise and has made my life hell. @bokka1 seems legit and awesome though from reading the posts.

3) How do you approach or choose a bond originator. Someone has suggest a bond originator to me that is in Durban. He seemed very happy with her. Not sure if she is with a company though but will find out. Think I need to start with getting pre-approval.

4) How do one find out what the market values are for the properties in an area. Do you have somewhere you check besides the agents prices on private property and 24? If the property needs work worth 150-200 000. Is it common for agents to still sell it at the value they think it should be and not subtract that? Won't this push the property above market value once you start the repairs?

I have a 100 questions as I will be the first one in my family to consider buying property or be in a position to buy something since we lost our home when I was in primary school and there is no-one to guide me or an example I can turn to for advice.
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For question 4 - have a look on property24, there is a feature that shows you what houses in specific areas and roads sold for. This will give you an idea. Alternatively, just have a look on property24 for houses in your area with similar specs to get an idea of the prices of other houses close by.
 
zerocool2009 said:
1) PM me, I have a 200 item check list to check for things when buying a property.
2) I can help you with that if you are in Gauteng (and organize discount (on transfer costs))
3) Apply directly (not going through a MO), its a bit more work, but if you want to sit back and let someone do your work, approach a MO by all means.
4) You can google a street, and property24 gives the sell (price) and registration date for every single property.

Please ask .... that is why we are here to help (or advise) ... and learn from each other's mistakes buying property

My honest advice to start with : Sit with your salary/income. Do the sums. Look how much you can buy for 30% of your nett income ! That is how the banks qualify client.
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@zerocool2009 - do you mind sending me your check list too? :)
 
@RedViking - I bought this at Exclusive Books a year or 2 ago. It gives an overview of the property process. There's a a few chapters that refer to buying and selling privately. It was very useful. They still sell the book.

IMG_0395.jpg
 
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Is there a benefit in paying over 15 years rather than 20 years. Or is it better to go 20 years and making use of the lower monthly payments for if there is a jump in interest rate, and or pay in extra every month over the monthly repayment?
 
RedViking said:
Is there a benefit in paying over 15 years rather than 20 years. Or is it better to go 20 years and making use of the lower monthly payments for if there is a jump in interest rate, and or pay in extra every month over the monthly repayment?
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I think the best was go for a 30 year loan with a lower interest rate and pay it off quicker with extra contributions over and above the monthly installments. Overall the interest paid will be less
 
MidnightZA said:
I think the best was go for a 30 year loan with a lower interest rate and pay it off quicker with extra contributions over and above the monthly installments. Overall the interest paid will be less
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Sorry my maths are not the best. (is there an advance calculator somewhere?)

So for arguments sake, on a 850 000 loan (50 000 deposit), 7.1% interest flexi

It is better to go for R5700 monthly payments and pay R7 700 a month (so 2 000 more), than

going for a 15 year loan and R7 700 monthly payments with nothing extra?
 
Someone I have met on occasion friend has had a disaster with his tenant in Silvertree Estate. First of all, the houses there sell for R12m - R15m so the rental of R60k a month is not exhorbitant

He is returning in October from a 6-year contract in Canada and wishes to move back in. The lease expired at the end of May and the tenant was given 2 weeks extra to move

On 5th July the cleaners and decorators arrived having been given a R65k contract to refurbish the place to the standard expected by the owner

The tenant had not moved out and in fact had made no plans at all. Entering the house, the central air-con had been turned up to 28 deg. Worst of all, the tenant had made several craps on the beds and carpets in the bedrooms and was lying naked in the master bedroom. The garden services fellow who has a key to the house, and is my neighbour, said the smell was appalling and the cleaners ran out the house in fright

Eventually the agent called the tenant's son, they called a doctor and had him committed. This took a further 2 weeks.

All the carpets, curtains, cupboard doors, kitchen fittings have been removed. The refurbishment will cost over R600 000,00.

This what you can call a tenant from hell. His attorney has agreed to pay for most of the damage.
 
RedViking said:
Sorry my maths are not the best. (is there an advance calculator somewhere?)

So for arguments sake, on a 850 000 loan (50 000 deposit), 7.1% interest flexi

It is better to go for R5700 monthly payments and pay R7 700 a month (so 2 000 more), than

going for a 15 year loan and R7 700 monthly payments with nothing extra?
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My advice about about years and deposit.

Put max 10% down, that will show the bank you have capital you are willing to put in.

Dont put more in, its a waste. If you put more in you wont be able to use it again (for future projects).

Example, you buy a place for R900 000 and put R300 000 down. The bond will be for R600 000 then. That R300 000 is now the banks. If you are wise, show the bank you are willing to help, but at max 10%

Later down the years, you can lend against the paid up bond (but not against a deposit). Hope it makes sense

Then the amount of years. I wouldnt suggest anyone should go 30 years. Its a very long contract/term. The bank will make the most money on a 30 year term ... 15 years go quick.

As the previous poster said, one of the biggest trick when having a bond (start putting all surplus money into it).

I committed for 5 years doubling my first bond. And it was paid off in 8 years. (Anything is doable)! Its just commitment
 
RedViking said:
Sorry my maths are not the best. (is there an advance calculator somewhere?)

So for arguments sake, on a 850 000 loan (50 000 deposit), 7.1% interest flexi

It is better to go for R5700 monthly payments and pay R7 700 a month (so 2 000 more), than

going for a 15 year loan and R7 700 monthly payments with nothing extra?
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www.ooba.co.za

Home Loan Calculators | Calculate Your Bond & Repayments

ooba’s home loan calculators allow you to calculate the size bond you're likely to qualify for and how much your bond repayments will be.
www.ooba.co.za www.ooba.co.za

Have a look at the options here. I think the one you are looking for is there.

There is another site that has extra payment calculators but I forget the name.

Also fnb has a calculator but I've never used it
 
MidnightZA said:
www.ooba.co.za

Home Loan Calculators | Calculate Your Bond & Repayments

ooba’s home loan calculators allow you to calculate the size bond you're likely to qualify for and how much your bond repayments will be.
www.ooba.co.za www.ooba.co.za

Have a look at the options here. I think the one you are looking for is there.

There is another site that has extra payment calculators but I forget the name.

Also fnb has a calculator but I've never used it
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I've seen the ooba ones and this one https://www.property24.com/calculators/additionalpayment.

The FNB one is what I am looking for (adding a lump sum every year) but doesn't seem to work properly for me.


But by adding 4 000 to my monthly payments I will reduce it from 15 years to 8 years.

Now I want to see how much lump sum can I add yearly to get it down to 5 years.

Lol, I hate debt.

I am going to need to fight with my poverty mindset, but know it is possible.
 
How long does the process normally take from the time of getting bond approval to a property being transferred in your name ?
 
Mercury12 said:
How long does the process normally take from the time of getting bond approval to a property being transferred in your name ?
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2 months maybe a bit more when there is covid case deeds offices close. 2 months is when all the parties in the deal has everything ready and there is no problems
 
How long after registration does the bank take to start collecting the bond? Documents were lodged 16 Aug, i put 30 days notice for Sept, my lease expires in Nov so I'm pretty sure I'll be liable to pay rent for Oct and Nov, can i ask the bank to start in Dec?
 
Same question.

Our registration went through yesterday. Payday is the 25th and I assume the bank takes their pound of flesh on the same day.

Would that debit order be loaded already? Wouldn't mind skipping a month to recoup the occupation rent we paid for most of August.
 
maxxis said:
Same question.

Our registration went through yesterday. Payday is the 25th and I assume the bank takes their pound of flesh on the same day.

Would that debit order be loaded already? Wouldn't mind skipping a month to recoup the occupation rent we paid for most of August.
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I dont think they can load it that quick, they have do debi check mandates, so might skip this month
 
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